“Now Gov. Romney believes that with even bigger tax cuts for the wealthy, and fewer regulations on Wall Street, all of us will prosper. In other words, he’d double down on the same trickle-down policies that led to the crisis in the first place.” — President Obama, in an ad released Sept. 27.
As Goldberg notes, Obama uses it because it “resonates” with the voters – the ignoranti, I call them – who have not clue what he’s talking about, except that someone in the Romney camp is to blame.
Goldberg tries to explain why it’s a lie:
[Glenn Kessler, the “fact checker” at the Washington Post] found that the Obama campaign has virtually no citations to back up the claim. The supporting material for the ad quoted above cites a single column by the Post’s liberal blogger, Ezra Klein, who told Kessler: “I am absolutely not saying the Bush tax cuts led to the financial crisis. To my knowledge, there’s no evidence of that.”
So, surprise, surprise, the Obama campaign is telling a lie over and over again, because it “resonates,” not because it’s true.
Goldberg has a little trouble explaining what really caused the Great Recession. He hasn’t read Tom Wood’s “Meltdown” or he would tell us about the role of the Federal Reserve. Barring that, however, Goldberg has most of it right:
The federal government…made it too easy to buy a home. Congress, on a bipartisan basis, set unrealistic affordable-housing goals for Fannie Mae and Freddie Mac.
President Clinton used those goals to expand access to mortgages to low-income borrowers. Then President George W. Bush, with the approval of Congress, expanded the practice, until way too many low-income or otherwise underqualified Americans owned mortgages they couldn’t afford.
A mixture of greed, idealism, cynicism and stupidity led to the practice of bundling those iffy mortgages into financial instruments that Wall Street didn’t know how to handle and regulators didn’t know how to regulate. As Rep. Barney Frank (D-Mass.) put it in 2003, he wanted to “roll the dice a bit” on regulating subprime mortgages.
Notice, please, what’s missing: any mention of deregulation or cuts in tax rates. Yet that’s what Obama continues to trumpet as the cause of the Great Recession.